Analyst Sees NVIDIA (NVDA) Momentum Building Into Key Catalysts

NVIDIA Corporation (NASDAQ:NVDA) is one of the AI stocks currently on Wall Street’s radar.

Nvidia is gaining Wall Street momentum after UBS reaffirmed its bullish stance on the AI chipmaker. On February 11, UBS analyst Timothy Arcuri raised the price target on NVIDIA Corporation (NASDAQ:NVDA) to $245.00 (from $235.00) while maintaining a Buy.

A positive earnings setup, bullish supply chain signals, and rising focus into GTC were highlighted as significant catalysts for the stock.

“Given middling stock performance, supply chain signals that remain bullish, and a management team that seems frustrated with the prevailing doubts around growth and margin sustainability, the earnings set-up here seems positive – especially as we head toward GTC next month.”

The company anticipates fiscal fourth-quarter revenue to reach approximately $67.5 billion, about $2.5 billion above the company’s guidance. While China demand remains uncertain, based on increasing adoption of domestic GPUs, the firm believes that Nvidia could still see incremental revenue from the region.

Looking ahead, it models fiscal Q1 revenue near $76 billion, which is slightly above investor expectations of $74-75 billion.

Nvidia is expected to maintain its 75% gross margin guidance, even though investors have begun to question about margin sustainability due to perceived competitive threats from Google/Broadcom TPU.

“investors have begun to question the sustainability of these levels given perceived threats from Google/AVGO TPU – a debate NVDA will surely address on this call and at GTC (especially in the context of the Groq deal).”

NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.

While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.